- Title: US Midterms: Democrats will 'probably try to slow down Trump's agenda' - analyst
- Date: 7th November 2018
- Summary: LONDON, ENGLAND, UK (NOVEMBER 7, 2018) (REUTERS) VARIOUS OF TRADERS AT BGC PARTNERS (SOUNDBITE) (English) GLOBAL FINANCIAL ECONOMIST, COMMERZBANK, PETER DIXON, SAYING: "The Democrats will probably try to slow down Trump's agenda to some extent, and as a consequence, you know, you might get closer to a state of gridlock that has characterised the US political scene for much of the past decade. I think the key issue here is going to be how the administration continues along its path towards the trade issues with China. I mean basically the Democrats are in no position to wants to intensify things. But equally they don't have the power to roll it back. So I rather suspect that the agenda will proceed from here probably forwards, but I think at a rather slower pace than we've seen over the course of the past 12 months." VARIOUS OF TRADERS AT BGC PARTNERS (SOUNDBITE) (English) GLOBAL FINANCIAL ECONOMIST, COMMERZBANK, PETER DIXON, SAYING: "The whole issue here is the extent to which you know Trump has already thought of opened up this particular can of worms (tariffs). A lot of duties have already been raised. So if you like the box has already been opened. It's very difficult, therefore, I think to try and turn things around from here, at least from his perspective. And he would also say, I guess, that the hardline position that he's adopted on trade has been quite electorally successful. So he is under no real incentive to try and roll things back. He will try and force the Chinese to the negotiating table. I suspect after a while that they will come back to the negotiating table and both sides can work out a deal which they can equally sell to their domestic electorate as a victory." VARIOUS OF TRADERS AT BGC PARTNERS
- Embargoed: 21st November 2018 14:01
- Keywords: US election midterm result market reaction traders dollar shares stocks
- Location: LONDON, ENGLAND, UK
- City: LONDON, ENGLAND, UK
- Country: United Kingdom
- Topics: Economic Events
- Reuters ID: LVA00195IBN9P
- Aspect Ratio: 16:9
- Story Text:European shares bounced on Wednesday (November 8) after U.S. midterm elections delivered no big surprise, while a string of solid earnings updates and a rally in Spanish banks on a favourable tax ruling also provided relief.
In early trading, the pan-European STOXX 600 rose 1.1 percent to a three-day high in a broad-based rebound that saw all major country and sectoral indexes trade in positive territory in morning deals.
Democrats rode a wave of dissatisfaction with President Donald Trump to win control of the U.S. House of Representatives on Tuesday, giving them the opportunity to block Trump's agenda and open his administration to intense scrutiny.
Company results announcements drove the biggest movers on the STOXX 600, with Delivery Hero and Ahold rising 8.4 and 5.3 percent, respectively, after strong updates. Adidas fell 2.7 percent after the sportswear company cut its revenue target due to a fall in sales in western Europe.
Global Financial Economist, Commerzbank, Peter Dixon, said the election results had largely been as markets had predicted.
"The Democrats will probably try to slow down Trump's agenda to some extent," he said, adding: "I rather suspect that the (Trump) agenda will proceed from here probably forwards, but I think at a rather slower pace than we've seen over the course of the past 12 months."
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